If you’re starting a new production effort, use a project plan
for the first cycle. It will give you the best possible estimate and budg- et. After you’ve done it once, you’ll have a budget for comparison next time. After you’ve done it three or four times, you’ll have a production work plan ironed out.
For example, many students in my project management class have been asked to create a quarterly corporate magazine or newsletter.
They use project management for the first three issues, until they know how to do the work well and are ready to make a production schedule and budget.
Project Name:Descriptive name that indicates project purpose to all parties.
Project Requested by:Customer Project Manager:IT manager of project
Imposed Budget: Dollar amount desired or required by customer Underline One:
required limit desired limit not yet set
Imposed Delivery Date:Delivery date desired or required by cus- tomer
Underline One:
required desired not yet set
Table 5-1. Quick project overview with field definitions (continued on next page)
Budgeting for Managers 74
Estimated Cost:Cost estimate from project team
Estimated Delivery Date:Delivery date estimate from project team Purpose (Justification):The reason the company, or a part of the company, should do the project.The value added to the company by the project.The business justification.The return on investment.
Initial Situation:The starting point. Description of the current sys- tem and the problem to be solved.
Current Situation:A status description of where the project is today.This is updated regularly during the project. Current situation = Initial Situation plus Completed Steps.
Goal (Detailed Description):The desired final state when the project is complete and the product is in use and supported. A care- ful, detailed, but non-technical description of what the system will do, who will use it, and how it will be supported.
Work Plan:Consists of the items listed below.
Concept:Define the idea. Decide if it is worth doing.
Approval
List of tasks to get approval for the Concept Phase.
Analysis:Plan the idea in detail. Know exactly what the customer wants. Decide whether to buy or build.
Approval
List of tasks to get approval for the Analysis Phase.
Design:Figure out exactly what we are making. Plan all the steps of the rest of the project. Create the detailed budget and schedule.
Approval
List of tasks to get approval for the Design Phase.
Development:Do the work. Buy what you need. Put it together.
Test it and make sure it works.
Approval
List of tasks to get approval for the Development Phase.
Transition to Production:Create all the manuals and peripherals.
Deliver everything to the customer.Train the customer to use it and support it, so they can get value from it without calling you for help.
Approval
Table 5-1. Quick project overview with field definitions (continued)
TE AM FL Y
Team-Fly
®We begin by talking to our customers and filling out the top half of the form: purpose, initial situation, and goal. It’s impor- tant that we get the customer’s answers to these questions, and not just our own.
When you take on a project, you’re a project manager, even if that’s not your job title. A small project may take only a few days and maybe you’ll do all the work yourself. That’s a good place to start. Over time, you can learn to handle longer proj- ects with more people on them.
List of tasks to get approval for the Transition to Production Phase.
Production:The time when the result of your project, the product or service, is in use.Write down what customer service and technical support will do to maintain the product or service in working order.
Decommissioning:Description of events or dates that would cause this product or service to be in need of review for major upgrade or replacement.
Table 5-1. Quick project overview with field definitions (concluded)
Customer Anyone who will use or work with the product or service we create.
Purpose The reason for creating the product or service, its ben- efit to the organization. How will it help the bottom line? Can we sell it? Will it reduce cost? Will it help us make a better product, serve our customers better, or get things to them sooner? Will it improve safety or reduce risk?
Initial situation The problem to be solved or the opportunity we want to take advantage of.What customers are doing now, what they are using, and why it isn’t working.The environment, that is, all of the things with which the new product or service will interact.
Goal What are we making? Picture the end result, the product or service in use by customers.Who are they? What will they be doing?
What will they be using?
Imposed Requested or required by the customer. “Imposed” is the opposite of “estimated.” “Imposed” is what the customer wants; “esti- mated” is what we think it will take to do the job.
Budgeting for Managers 76
Project Name:
Project Requested by:
Project Manager:
Imposed Budget: $ Underline One:
required limit desired limit not yet set Imposed Delivery Date:
Underline One:
required desired not yet set
Estimated Cost: $
Estimated Delivery Date:
Purpose (Justification):
Initial Situation:
Current Situation:
Goal (Detailed Description):
Work Plan:
.
Table 5-2. Quick project overview, blank for copying (continued on next page)
We use the Project Overview to accomplish the first two steps. As we do, we may be told, “This project has to be done by June 1” or “We can only spend $500 on decorations and catering for the big gallery opening.” We need to listen to and respect the customers’ wishes. We call these the “imposed schedule” and “budget.” We aren’t saying that we can do what they’ve asked; but we know they want it. If their request, the imposed date or budget, doesn’t match our estimate of what the job will take, we’ll work it out with them.
Here are the steps for defining the project and finishing the top half of the Quick Project Overview.
1. Write down what you know. Put question marks next to what you don’t know.
2. Talk to people. Find out what they want and get their ideas. Use the overview as a questionnaire; don’t leave the meeting without asking at least one question that will help fill in each spot on the top half of the form. If they don’t Concept:
Approval Analysis:
Approval Design:
Approval Development:
Approval
Transition to Production:
Approval Production:
Decommissioning:
Table 5-2. Quick project overview, blank for copying (continued)
know the answer, ask them who does or if they can find out.
3. Write up what you have and show it to everyone in draft form. Make sure they understand that you want more sug- gestions and any corrections.
4. Write up their replies. Create a final project overview.
Resolve any disagreements.
5. Get approval.
If you do this, your Quick Project Overview (QPO) will look something like the top half of Table 5-3 (pages 79-84) which is a QPO for a quarterly newsletter for a small business.
We complete the QPO by creating the work plan and then estimating our budget.